Accounting software is a computer program that records, processes and reports financial transactions. Modern cloud solutions like Xero provide real-time access and automation.
Accounting software has evolved from desktop programs to cloud-based platforms that provide real-time financial management from any device. Modern solutions like Xero offer bank feed integration, invoicing, bill management, payroll, multi-currency support and extensive third-party integrations. Key features to look for include automatic bank feeds, multi-user access, mobile apps, tax compliance reporting, financial dashboards and API access for integrations. The shift to cloud accounting has enabled a new category of AI-powered automation tools like SortBooks that connect to your accounting software and handle routine bookkeeping tasks automatically. When choosing accounting software, consider your business size, industry, compliance requirements and the availability of integrations with your other business tools.
SortBooks helps with the bookkeeping behind accounting software by connecting to your Xero account and using AI to suggest the right account for transactions sitting in catch-all accounts, learning from your own past coding. Instead of fixing accounting software by hand, you review each suggestion, approve it, and SortBooks updates Xero, GST code included. Then ask the AI CFO about your numbers, using live Xero data.
Xero is a cloud-based accounting platform designed for small businesses. It provides invoicing, bank reconciliation, payroll, reporting and integrations with over 1,000 third-party apps.
Cloud accounting uses internet-based software to manage your business finances. Data is stored securely online and accessible from any device with internet access.
Bookkeeping automation uses technology to perform repetitive bookkeeping tasks without manual intervention, including transaction categorisation, reconciliation and report generation.
A bank feed is an automatic, real-time connection between your bank account and your accounting software that imports transactions directly, eliminating manual data entry.
Financial statements are formal reports that summarise your business's financial position and performance. The three core statements are the profit and loss, balance sheet and cash flow statement.
Connect Xero, check the AI's suggestions and approve the changes. SortBooks updates Xero for you.